Netjoy Holdings Limited on 2 April 2026 disclosed the key findings of an independent forensic investigation into abnormal fund flows surrounding its former 3C electronic-product supply-chain business. The share suspension imposed since 31 March 2025 remains in force.

Scope and methodology

• The Investigation Firm reviewed transactions from 1 January 2024 to 31 December 2024, examined electronic data back to July 2022 and interviewed 14 current and former employees. • Work covered contract analysis, fund-flow tracing, electronic-data review, staff interviews and public-record searches. • Direct access to key external counterparties was unavailable due to ongoing criminal proceedings; alternative cross-checks were performed through internal records.

Key findings

1. Fraud structure – Letui, a Netjoy subsidiary, prepaid suppliers Zhiyou and Xiyao for 3C products designated by customer Ruiya. – A hidden upstream entity, Saideye Communication, controlled by Ruiya’s controller, routed 99.9 % of the prepayments back to Ruiya, bypassing goods-control procedures. – The funds were allegedly diverted by Ruiya’s de facto controller for unrelated ventures and partially recycled to cover earlier obligations, forming a “repay old with new” pattern.

2. Financial impact – As of 31 December 2024 Netjoy recorded RMB170.00 million in unutilised prepayments. – RMB7.00 million was recovered by June 2025; outstanding exposure therefore stands at about RMB141.00 million. – Two attempted procurement contracts totalling RMB200.00 million were blocked in August 2024 after anomalies surfaced.

3. Internal-control lapses – Over-reliance on the business team, incentive structures tied solely to profit, failure to enforce warehouse control, and exclusion of the legal team from payment approvals. – Required “upstream penetration” checks were not embedded in approval workflows; supplier due-diligence was superficial.

4. Personnel accountability – Project head Hao Xu and manager Yang Wenqiang concealed related-party links and were dismissed or resigned. – Several finance and legal staff were reassigned; former CFO Lin Qian and senior vice-president Zha Lijun were faulted for weak oversight but cleared of integrity breaches. – Chairman Xu Jiaqing and former CEO Wang Chen were cleared of wrongdoing and led the project shutdown.

Remedial measures and legal action

• The 3C Project was terminated on 16 August 2024 and the team disbanded. • Ruiya and 12 guarantors signed joint-liability agreements; Ruiya’s and Saideye Communication’s equity has been pledged to Netjoy. • Civil suits were filed in June 2025; a criminal case against Ruiya’s controller was officially opened on 12 September 2025. • An independent consultant is overhauling group-wide controls, with implementation targeted within three months of the final report.

Outlook

Completion of the internal-control review and satisfactory progress on recovery and governance will be required to meet Hong Kong Stock Exchange resumption conditions. Shareholders are urged to exercise caution while the suspension of Netjoy’s shares continues.